Investing.com - Financial Markets Worldwide

Jobs Report Disappoints But Market Rallies

ByWall Street Sector Selector
AuthorJohn Nyaradi
Published 10/23/2013, 02:47 AM
Updated 05/14/2017, 06:45 AM
DJI
-1.69%

Delayed jobs report disappoints but SP500 climbs to new record

The delayed September Non Farm Payrolls report came in below expectations but the SP500 (SPY) opened sharply higher on expectations that Federal Reserve easing would remain in place longer than previously expected.

The expected number was in the region of 180,000 and the final number was 148,000. The SP500 (SPY) and the Dow Jones Industrial Average (DIA) rallied on the news, along with Treasuries (IEF) while the U.S. Dollar (UUP) fell to two year lows against the Euro dollar (FXE)

The overall unemployment rate declined from 7.2 percent from last month’s 7.3 percent.

U.S. Treasuries (IEF) rallied on the news even as analysts forecast that Q4 GDP could have been reduced by as much as 0.5% due to the government shutdown which cost the economy more than $20 Billion.

Bottom line: Employment growth remains weaker than expected which indicates the Federal Reserve will further postpone tapering of its quantitative easing program. Major U.S. indexes rally.

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